Finding 371207 (2020-007)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2020
Accepted
2024-02-29

AI Summary

  • Core Issue: Missing documentation for one employee's salary raises concerns about payroll accuracy.
  • Impacted Requirements: Compliance with Uniform Guidance Allowable Costs/Cost Principles is not met due to inadequate internal controls.
  • Recommended Follow-Up: Implement a checklist for HR to ensure all necessary documents, like pay rates and tax forms, are included in personnel files.

Finding Text

Assistance Listing Numbers 93.224 and 93.527 – Health Center Program Cluster Award Numbers: H80CS00112, H8CCS34790, H8DCS36181 and H8ECS38688 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Material Weakness Condition and Context: Five individuals were selected to review personnel files and payroll related to salary for the Organization. Of the five files reviewed, one file support could not be located to verify existence. Criteria: Uniform Guidance Allowable Costs/Cost Principles addresses activities related to salaries for the Organization which should be properly supported by internal controls to ensure that personnel documentation properly supports the salaries that were paid to qualified individuals and that compensation to individual employees must be reasonable for the services rendered. Effect: There was exposure which could have resulted in errors occurring in the payroll that was incurred during the year. Cause: The Center did not have a formal policy to retain documentation of approved wage rates for all employees. Questioned Costs: $97,115 Repeat Finding: Repeat finding of 2019-005 Recommendation: The Organization’s human resources staff should use a checklist to ensure that all necessary documents are kept in the personnel files, including applications or resumes, approved pay rate, Form I-9, and Form W-4. Views of Responsible Official: Management of the Organization concurs with the audit finding

Corrective Action Plan

RESPONSE: FINDING 2020-007 Explanation of Disagreement with Audit Findings: There is no disagreement with the audit findings. Actions Planned in Response to Findings: The Organization has implemented a formal onboarding process for new employees supported by checklist to ensure all onboarding processes and procedures are completed. The processes include obtaining W-4 and I-9 forms in addition to other required documents that are to be kept in each personnel file, along with the checklist. Background checks and credential verification are conducted on all new personnel and a copy of the support along with a copy of the applicants resume or application are stored in the file. In addition, Organization will review all current employees’ personnel file to verify all required documentation is included in each employee’s file. Official Responsible for Ensuring CAP: Nichole Thomas, Human Resources Manager, is the official responsible for ensuring the planned responses. Planned Completion Date for CAP: December 31, 2023. Plan to Monitor Completion of CAP: Becky Howard, Interim Chief Executive Officer, will ensure the process and documentation retention has been completed. She will do this through discussions with the Human Resources Manager.

Categories

Questioned Costs Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 371208 2020-007
    Material Weakness Repeat
  • 371209 2020-008
    Material Weakness Repeat
  • 371210 2020-008
    Material Weakness Repeat
  • 947649 2020-007
    Material Weakness Repeat
  • 947650 2020-007
    Material Weakness Repeat
  • 947651 2020-008
    Material Weakness Repeat
  • 947652 2020-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $3.05M
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $225,904